What is Deferred tax? What is the difference between current tax and deferred tax.give some example of deferred tax.

Answer Posted / vishnu tiwadi

deferred tax means is a bookkeping term.that helps account
for the difference between the value of libility or asst
and the amout of the tax due on the libility or asset
current tax means the amout payable in current year

Is This Answer Correct ?    3 Yes 2 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is the entry to be passed on receiving the tds certificate in the books of the deductee?

2190


calculations of pf

3204


what is use of cost center category in tally ? why & when use this ? what is benfit ?

1637


Apportionment of expenses

1832


How to pass workscontract sale invoice which includes WCT & VAT.

1794






When their is one pick point and four unloading places with in same district their is need to write four number of way biils

1379


DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in haryana. The company's sales in the year ending on 31st march 2007 were Rs.1000 million(Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of the company is 14 percent.The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30 million per annum. The plant can be sold for Rs.200 million: (a) The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annum installment of interest and repayment of principal. (b) A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: (1) Should the company expand its capacity? show the computation of NPV. (2) What is the annual installment of bank loan? (3) calculate the quarterly installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?

2566


What are the effects when intangibles and tangible assests decrease

1667


A company primarily operating from own land, takes on rent building for staff quarters. Whether rent paid on such staff quarters qualifies as capital investment?

1451


can i material bill book in miro without vat on transport charges ?

1607


how to reduce the interesting giving to debts ?

1669


Dillution effect on EPS

1909


What is journal entry for salary paid less deductions (e.g. fines for breaking a company's property)?

1105


Journalise- opened a saving a/c with S.B.I. ?

1185


what is a grn in terms of accounting ? what is a grnthroughpo in terms of purchase order? what is a direct grn?

3840